KOLKATA/MUMBAI: ICICI Bank and HDFC Bank have approved JFC Finance (India) Ltd’s bid to acquire the insolvent Palogix Infrastructure, a 20-year old firm in railways logistics, two people close to the development said.

JFC Finance, the Delhi-based non banking firm, has proposed to acquire close to 80% in Palogix for Rs 100-crore, one of the people cited above said.

Two more investors were also in race to acquire Palogix, while the committee of creditors approved JFC’s bid. The resolution plan includes setting up of a special purpose vehicle for the acquisition, operation and management of the firm.

The National Company Law Tribunal’s Kolkata bench will hear the case later this week. Subject to NCLT’s approval, it would be one of the handful cases so far where external investors come to rescue a failed company while amendments to bankruptcy code bar promoters from bidding for their own company.

Resolution professional Mamta Binani declined to comment on the matter. She was also involved in the resolution of Synergies-Dooray Automative, India’s first successful debt recast under the new Insolvency and Bankruptcy Code.

Palogix, which was carrying Rs 73 crore secured debt and Rs 77 crore unsecured loans, was referred to the bankruptcy court by ICICI Bank in May last year.

ICICI Bank did not respond to ET’s query on the subject till the time of going to press.

The survival of Palogix would assume significance as logistics sector acts as a key proxy to economic activities.

Sources said that its liquidation value available to the operational creditors is zero, but JFC Finance has proposed to clear all dues to the government, the operational creditors and employees.

The resolution plan mentioned JFC as an NBFC actively investing in distressed assets. It had a net worth of Rs 52.64 crore at the end of March 2016. JFC would infuse capital through the SPV as and when required under Clause 5.8 of the bankruptcy law.

JFC is also set to acquire Hotel Fort Rajwada, a Rajasthan-based hotel, after NCLT’s principal bench in New Delhi approved it in December last year.

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